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Group project substitute…type answers in the spaces provide. Expand as needed. Email me with questions. Return not later than May 22. If it's late, the default grade will stand.
Consider the proper role of government in economic terms. When should government intervene in free markets?
When free markets are clearly broken. Generally, the government should stay out of free markets but they sometimes act in dysfunction or on a criminal level. For example, supply and demand might dictate that a gas shortage means that people can gouge and get the price they seek. However, the government should stop that (and they generally do)
Find and complete the Politopia survey. Follow the instructions to score your answers. Find your preferred location on the map of Politopia.
Submitted separately
Step 2. Consider the four standards for government action in a free market economy from the government study guide.
The Jefferson standard: From his first inaugural address:
"A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government.
The Lincoln standard: From Abraham Lincoln, The Collected Works, ed. Roy P. Basler
The legitimate object of government, is to do for a...
In all that the people can individually do as well for themselves, government ought not to interfere.
The Mankiw standard: Principle 7
Principle 7 -- Governments can sometimes improve market outcomes.
The Obama standard: Middle-class economics from 2015 SOTU
Middle-class economics means helping working families feel more secure in a world of constant change. That means helping folks afford child care, college, health care, a home, retirement -- and my budget will address each of these issues, lowering the taxes of working families and putting thousands of dollars back into their pockets each year.
Short answer assessment.
Locate each of these standard bearers on the Politopia map and on the Boundary map adapted from Politopia below on page 2. Describe in the space below why you have placed them in their respective locations. Focus on the north-south axis which measures the degree of economic freedom.
Answer here; expand as needed.
The Obama Standard would be South or Southeast. The Mankiw standard would probably be in the top part of the South section. Jefferson would be Northwest, for sure. Lincoln would be Northwest to North.
NOTE: Expand all answer blocks as needed.
Step 3. Mark your own…
Politics In "The New War Between the States," Fund (2014) discusses the implications of states and cities that have high taxes, including income taxes, versus those with low tax rates. The author's thesis is that states with lower taxes foster economic growth, which is why many people are moving to those areas. In fact, lower taxes are being used as a marketing tool to attract investors as well as new residents.
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